The USD continued it recent ascent yesterday versus most of the major currencies. The dollar reached a five and a half month high of 1.4776 against the Euro. A stronger than expected rise in Core CPI was a main catalyst in yesterday’s bullishness as it rose 0.3% in the month of June. CPI also came in higher than the expected rise of 0.4% at 0.8%. In addition, Federal Open Market Committee (FOMC) Member Stern added some hawkish comments when he estimated that the US economy will improve in the short term. The Natural Gas Storage indicator came in at 50B, 3B lower than last week’s publication, but once again in positive territory. Shortly following the 2:35 GMT release the USD made a strong push against the EUR, as the oft-traded pair saw a 100 pip drop. Unemployment Claims in higher than expected but lower than previously published at 450K and Federal Open Market Committee (FOMC) Member Stern supported the greenback movement for the day as his hawkish comments estimated that the US economy will improve in the short term.

Today will be a big news day for the US economy as many crucial indicators will come to light. Expectation for the majority of the news events are negative, and could result in a bearish correction for the USD. The Empire State Manufacturing Index is expected to print at -4.3 along with TIC Net Long-Term Transactions which is projected at 60.0B, 7.0B lower than its last measurement. Industrial Production is projected to see no change from last month and any positive move could offset its fellow indicators for the day. One of the more significant pieces of data will be Preliminary University of Michigan Consumer Sentiment report. The indicator is expected to strengthen the USD; as it is projected at 62.0 which is 0.8 higher than previous recordings. With the varying change in US data, a high trading volatility can be expected today.

Traders should stay close to the market today, as there is a strong chance to capitalize on the expected fluctuation in today’s trading session.